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Six things that could get more expensive for Americans under Trump tariffs


US President Donald Trump has imposed tariffs on Canada and Mexico in a move that threatens to spark a trade war between America and its neighbours.

Goods entering the US from Canada and Mexico will now be slapped with a 25% charge. Canada has announced tariffs of its own in response and Mexico has said it will also retaliate to the measures.

The three trade partners have deeply integrated economies and supply chains, with an estimated $2bn (£1.6bn) worth of manufactured goods crossing the borders daily.

Trump says he wants to protect American industry, but many economists warn such tariffs could lead to prices rising for consumers in the US.

That's because the tax is paid by the domestic company importing the goods, who may choose to pass the cost on to customers directly, or to reduce imports, which would mean fewer products available.

So what could get more expensive?

Cars will probably go up in price - by about $3,000 according to TD Economics.

That's because parts cross the US, Canadian and Mexican borders multiple times before a vehicle is assembled.

Many well-known car brands, including Audi, BMW, Ford, General Motors and Honda trade parts and vehicles across the three countries.

As a result of higher taxes paid on the importing of parts to build the cars, it is likely the costs will be passed on to customers.

"Suffice it to say that disrupting these trends through tariffs... would come with significant costs," said Andrew Foran, an economist at TD Economics.

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